India-New Zealand Free Trade Deal: Who Gains, Who Loses? Explained in Simple Terms

Deal Finalized
India and New Zealand have successfully concluded negotiations on a Free Trade Agreement (FTA). Under this pact, Indian goods will enter New Zealand duty-free, opening significant opportunities for sectors like textiles and leather, which rely heavily on labor. Additionally, New Zealand has committed to investing $20 billion (over ₹1.6 lakh crore) in India over the next 15 years.

Benefits for India
New Zealand will provide zero-duty access for 100% of Indian exports, helping Indian companies expand their presence there. However, India has chosen not to reduce import duties on sectors like dairy, meat, vegetables, sugar, copper, and aluminum.

Benefits for New Zealand
Exports from New Zealand, including sheep meat, wool, coal, and timber, will enjoy duty-free access to India. Certain agricultural and specialty products such as kiwi, cherries, wine, avocado, and honey will also receive concessions, making them more affordable in India.

Impact on Farmers and Domestic Markets
India has fully excluded its dairy sector from the FTA, meaning no concessions on milk, cream, curd, or cheese. Key commodities like onions, chickpeas, peas, sugar, and jewelry are also excluded to protect domestic traders.

Opportunities for Students and Professionals
Indian students pursuing STEM courses can now stay and work in New Zealand for 3 years after graduation and master’s programs, and 4 years for PhDs. Additionally, 5,000 Indian professionals will receive temporary employment visas annually, covering fields like IT, engineering, healthcare, AYUSH, yoga instruction, and music education.

Women-Led Negotiation and Record Speed
Commerce Minister Piyush Goyal highlighted that this is India’s first major trade deal negotiated by a women-led team, with Joint Secretary Patel Dhillon heading the delegation. The deal was finalized in a record 9 months. This marks the Modi government’s seventh major trade agreement, following deals with the UK and Oman, and opens new avenues for Indian exporters.

Key Points of the FTA

• 100% Duty-Free: All Indian goods entering New Zealand.
• 5,000 Work Visas: Annual quota for Indian professionals.
• 1,000 Work & Holiday Visas: Annual quota.
• 3-4 Years: Work opportunities for students post-study.
• $20 Billion Investment: New Zealand’s planned investment over 15 years.
• $2.4 Billion Trade: Total bilateral trade in 2024.

Restricted Access for New Zealand

• Dairy products: milk, cream, curd, cheese
• Vegetables and grains: onion, chickpeas, peas, maize, almonds
• Others: sugar, honey, animal/vegetable oils and fats
• Industrial: arms, ammunition, gems, copper, aluminum products

On Trade with the US
Minister Goyal also confirmed that India-US trade negotiations have advanced to their final stages. India has now finalized FTAs with three members of the Five Eyes group: Australia, UK, and New Zealand.